USHY vs VYM
USHY vs VYM
iShares Broad USD High Yield Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. USHY offers more diversification with 1577 holdings.
Side-by-Side Comparison
| Metric | USHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $29.0B | $79.0B | |
| Dividend Yield | 6.89% | 2.86% | |
| Holdings | 1,893 | 568 | |
| YTD Return | -1.71% | +13.24% | |
| 1Y Return | +1.21% | +23.76% | |
| 3Y Return (annualized) | +7.04% | +16.97% | |
| 5Y Return (annualized) | +3.25% | +12.26% | |
| Volatility (annualized) | 9.7% | 14.6% | |
| Max Drawdown | -31.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2017 | Nov 10, 2006 |
USHY vs VYM Performance
iShares Broad USD High Yield Corporate Bond ETF (USHY) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USHY returned +1.21% while VYM returned +23.76%. Year to date, USHY is down 1.71% versus a gain of 13.24% for VYM.
Over three years, USHY compounded at +7.04% per year against +16.97% for VYM; over five years the annualized figures are +3.25% and +12.26% respectively. Across the full 9-year window we track, VYM has the edge at +6.96% annualized vs +2.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 9.7% for USHY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -31.0% for USHY and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USHY charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, USHY currently yields 6.89% against 2.86% for VYM.
Holdings Overlap
USHY and VYM share 0 holdings out of 2135 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, USHY or VYM?
USHY has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, USHY or VYM?
Over the past year USHY returned +1.21% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), USHY annualized +2.09% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, USHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.7% for USHY. Worst drawdown: USHY -31.0% vs VYM -58.8%.
Should I hold both USHY and VYM?
USHY and VYM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USHY and VYM?
USHY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2135 unique securities.
Which pays a higher dividend, USHY or VYM?
USHY yields 6.89% while VYM yields 2.86%, so USHY currently pays the higher dividend yield.
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